Effective Executive Search Strategies

Most CEOs have been confronted with the need to recruit for their senior management team. The market for great talent has exploded, competition is high and candidates are again in a position of power. Companies have to work harder to woo and win the best candidates. Whether recruiting via a personal network, working with an executive search firm or utilizing an internal recruiting function, companies with the most effective recruiting strategies have a CEO who is a talent management advocate. He/She must believe recruiting is important, and convince senior management of instituting a strong talent strategy. Chances are that highly desirable candidates are currently employed by another company, so there will need to be a roadmap as to how to reach and interest them.

Best practice companies integrate their human capital strategy into their overall corporate business plan. They develop a specific recruiting game plan, a precise definition of what “great talent” really means and the common key competencies that predict success in their organization. A thorough position description with specific detail of the role, responsibilities and candidate qualifications is essential, as is a process to benchmark compensation. Ownership is assigned to the entire life cycle of an executive search; deciding whether one individual or a team will be responsible for the integrity of the search process. A clear outline of the assessment methodology, how it will be administered and how the results will be interpreted, must be agreed upon. Executives who are conducting the interviews need to be cognizant of the importance of courting candidates. Even candidates who are not contenders will leave an interview with an impression of the company that they may ultimately share, albeit unknowingly, with other prospective candidates.

When the strategy has been approved, and an executive search firm has been selected as the appropriate vehicle for acquiring top talent, specific actions may ensure an efficient and effective recruiting effort. The most important element in conducting a successful search is effective, regular communication. Establish weekly conference calls to ensure that the search strategy is working and that candidate profiles meet the specification. Designate members of the search committee to participate in the weekly calls.

When the search is launched, the search firm should spend adequate time with the hiring manager and key decision makers to gain a thorough understanding of the organizational structure and corporate culture. Hiring managers should be prepared to discuss responsibilities and requirements of the position, reporting relationships, six month to one year objectives for the position and how the successful candidate will be measured. This information provides the foundation for constructing the position specification. It is critical that the position description and target compensation package are agreed to and “signed off” by both the company and the search firm to ensure consensus going forward.

A search strategy is developed with a “wish list” of target companies that might currently employ a prospective candidate, encompassing competitors, those in related industries, and companies with reputations for developing great executives with specific functional or industry expertise. It is essential to provide the search firm with a “pitch” — a compelling story that can be used to entice potential candidates. Conversely, due to the highly competitive marketplace, prepare for skeptics; anticipate negative feedback and develop a convincing response.

Discuss the degree of confidentiality needed in approaching prospective candidates; if there is an incumbent, and the search must be conducted discretely, there must be agreement as to how the process will unfold. Expectations should be set regarding the timing of the search process. During each round of interviews, feedback to the recruiter and feedback from the candidate must be exchanged within 24 hours.

We see the reference process being conducted more and more frequently by employers as opposed to search firms; legal implications of this process should be reviewed with a corporate counsel before referencing begins. When the final offer is developed the search consultant is expected to gauge the candidate’s salary expectations, so when the offer is extended, it is in line with what both sides have anticipated.

Companies that invest time and resources to develop a strong, effective recruiting strategy that is reinforced and aligned with corporate objectives have the greatest advantage in attracting and retaining top talent.